We’ve been busy dissecting and analysing the latest Budget in the ‘Money Matters’ column over the last two weeks. And, for those of you who have not been paying attention, here are the main headline issues from Chancellor George Osborne’s Budget speech –

reductions in the rates of capital gains tax

introduction of a Lifetime ISA for under 40s

changes to Entrepreneurs’ Relief

abolition of Class 2 NIC

reduction in the corporation tax rate

reforms to corporate tax losses.

Personal tax matters are, of course, very important for most of you and we will look at them again in some detail this week before we look at business taxation next week. There are a number of key headings . . . Help to Save The government has announced the introduction of a new type of savings account aimed at low income working households. Individuals in low income working households will be able to save up to £50 a month into a Help to Save account and receive a 50% government bonus after two years. Account holders can then choose to continue saving under the scheme for a further two years. The scheme will be open to all adults in receipt of Universal Credit with minimum weekly household earnings equivalent to 16 hours at the National Living Wage or those in receipt of Working Tax Credits. Accounts will be available no later than April 2018. Pensions consultation and reform The government consultation ‘Strengthening the incentive to save’ looked at the way pensions are taxed. The consultation found that while the current system gives everyone an incentive to save into a pension, and people like the 25% tax free lump sum, it is also inflexible and poorly understood. Young people in particular are not saving enough, often because they feel they have to choose between saving for their first home and saving for retirement. The Chancellor said in his speech:‘Over the past year we’ve consulted widely on whether we should make compulsory changes to the pension tax system. But it was clear there is no consensus.’ The Chancellor is introducing the Lifetime ISA as a vehicle for younger people to save. Pensions advice The Financial Advice Market Review (FAMR) aims to support the provision of affordable and accessible advice. FAMR was a joint review between the Financial Conduct Authority and Her Majesty’s Treasury, and its recommendations were published on 14 March 2016. The government commits to implement all of the recommendations for which it is responsible, and will:

Consult on introducing a single clear definition of financial advice to remove regulatory uncertainty and ensure that firms can offer consumers the help they need.

Increase the existing £150 Income Tax and National Insurance relief for employer arranged pension advice to £500. The new exemption will ensure that the first £500 of any advice received is eligible for the relief. It will be available from April 2017.

Consult on introducing a Pensions Advice Allowance. This will allow people before the age of 55 to withdraw up to £500 tax free from their defined contribution pension to redeem against the cost of financial advice. The exact age at which people can do this will be determined through consultation. This means that a basic rate taxpayer could save £100 on the cost of financial advice.

The government will also restructure the delivery of public financial guidance to make it more effective. Phased rollout of Tax-Free Childcare The government has announced it will introduce Tax-Free Childcare in early 2017. Tax-Free Childcare will be gradually rolled out to children under 12 with the parents of the youngest children being able to enter the scheme first. The scheme will be open to all eligible parents by the end of 2017. The existing scheme, Employer-Supported Childcare, will remain open to new entrants until April 2018 to support the transition between the schemes.

You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) - http://www.clayshawbutler.com/news/latest-news-for-businessWe have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business. We stay ahead of the game by putting great store by continual professional development for our staff. With Investors In People status at Clay Shaw Butler, we care passionately about making sure our staff have all the tools they need to serve you, our customers.

Weblink -http://www.clayshawbutler.comThe team at Clay Shaw Butler can be contacted on 01267 228500. The team at Clay Shaw Butler are on Twitter. Look for @clayshawbutler.

Comments

Popular posts from this blog

New appointment at Bay TV SwanseaFreelance journalist and media consultant Robert Lloyd has been appointed as station manager and head of news and sport at Bay TV Swansea.Lloyd, 58, has more than 40 years of experience in the media world.He is a former editor of the Carmarthen Journal and Llanelli Star and a former deputy editor of the South Wales Evening Post.Peter Townsend, chairman of Bay TV (Swansea) Ltd, said:“We are delighted to welcome Robert Lloyd to the team at Bay TV Swansea.“He is a well-known figure throughout the community and brings a wealth of experience to the team.”Robert Lloyd said:“Bay TV Swansea has built some very solid foundations as a local TV station since its launch in July, 2016.“I look forward to working with energetic, enthusiastic and very professional colleagues at Bay TV Swansea.“I will be working hard to build further partnerships in the community and extending Bay TV Swansea’s reach into the S…

Special roast Sunday lunches are back on the menu at the popular Llanelly House in Llanelli town centre. The kitchen at the historic Georgian house is back in business for Sunday lunches, starting this weekend, April 30. “We’ve had requests galore from our loyal customers, asking every day of the week when we will be opening again for Sunday lunches,” said Llanelly House trustee Alison Evans. “This Sunday, we are delighted to be opening our doors again for special roast lunches. As we have a brilliant location, slap bang in the middle of Llanelli town centre, we are looking forward to welcoming customers old and new this Sunday. “Our resident chef Anna Brown is known throughout the land for her appearances on TV and radio, so you can trust that she will have plenty of culinary treats for everyone to enjoy, starting this Sunday. “Booking is advised and you can save yourself a table by ringing 01554 772857.” The café and restaurant opens at 10am and the Llanelly House team will also be…